Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

What is total amount paid to a partner if a partner is paid remuneration and also an agreed amount as realisation expenses but realisation expenses are less than the agreed amount, at the time of dissolution of partnership firm?

Options:

 Remuneration

Remuneration + Agreed amount of realisation expenses

Remuneration + Actual realisation expenses 

Agreed amount of realisation expenses

Correct Answer:

Remuneration + Agreed amount of realisation expenses

Explanation:

For agreed remuneration to such partner who agrees to undertake the dissolution work-
Realisation A/c Dr.
   To Partner’s Capital A/c
(Being remuneration and realisation expenses payable to partner)
* Agreed amount is paid to partner irrespective whether realisation expenses are more or less than the agreed amount.